Financial Design Group LLC

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 – Advisory Business, this section provides additional
details regarding our firm’s services along with descriptions of each service’s fees and compensation
arrangements.

Financial Design Group believes that its annual fee is reasonable in relation to (1) services provided and
(2) the fees charged by other investment advisers offering similar services/programs. However, our
annual investment advisory fee may be higher than that charged by other investment advisers offering
similar services/programs.

The exact fees and other terms will be outlined in the agreement between you and Financial Design
Group.

Asset Management Services

For our asset management services, individual accounts will be charged an annual fee based upon the
amount of assets under management in each client account. For clients with multiple accounts, fees are
charged on a per-account basis and we do not bundle accounts to achieve breakpoints. Every account is
therefore billed separate from other accounts.

Financial Design Group, LLC                       Page 10                       Form ADV Part 2A Firm Brochure

Each asset tier shall be assessed a fee percentage in accordance with the schedule shown below. The
cumulative fee percentage for the account shall be a blended rate based on the fee percentages applied
to each asset tier:

         Assets Under Management                                             Annual Fees
         $0 – $499,999                                                       1.00%
         $500,000 – $1,200,000                                               0.75%
         $1,200,001 – $2,500,000                                             0.65%
         Any Assets Thereafter                                               0.55%

         This is a blended fee schedule. This means that the assets in a client’s account will be billed at
         different levels according to the fee schedule above. For example, if a client had an account value
         of $2,000,000.00 then the following equation would be used to calculate their quarterly fee:
         ($499,999 x 1%) + ($700,000 x .75%) + ($800,000 x .65% = $15,449.99 /4 = $3,862.50.)

Fees charged for our asset management services are negotiable based on the type of client, the
complexity of the client's situation, the potential for additional account deposits, and the total amount of
assets under management in the account. Each client’s specific fee arrangement will be detailed in the
client’s agreement for services.

Fees charged for our asset management services are charged based on a percentage of assets under
management in the account, billed in advance (at the start of the billing period) on a quarterly calendar
basis and calculated based on the fair market value of your account as of the last business day of the
previous billing period.

Fees are prorated (based on the number of days service is provided during the initial billing period) for
your account opened at any time other than the beginning of the billing period. If asset management
services are commenced in the middle of a billing period, the prorated fee for the initial billing period is
billed in arrears at the same time as the next full billing period’s fee is billed.

The asset management services continue in effect until terminated. You may terminate the services by
providing Financial Design Group with notice. Financial Design Group may terminate the services by
providing you with written notice effective 30 days after you receive the written notice. Any prepaid,
unearned fees will be promptly refunded by Financial Design Group to you. Fee refunds will be
determined on a pro rata basis using the number of days services are actually provided during the final
period.

The investment advisory fees will be deducted from your account and paid directly to our firm by the
qualified custodian(s) of your account. You will authorize the qualified custodian(s) of your account to
deduct fees from your account and pay such fees directly to our firm. Our firm will send you a billing
statement prior to time that fee deduction instruction is sent to the qualified custodian(s) of your account.
The billing statement will detail the formula used to calculate the fee, the assets under management of
the account and the time period covered. See Item 15 – Custody for more details.

You should review your account statements received from the qualified custodian(s) and verify that
appropriate investment advisory fees are being deducted. The qualified custodian(s) will not verify the
accuracy of the investment advisory fees deducted.

Financial Design Group, LLC                         Page 11                        Form ADV Part 2A Firm Brochure

Brokerage expenses and/or transaction fees charged by the qualified custodian are billed directly to you
by the qualified custodian. Financial Design Group does not receive any portion of such commissions or
fees from you or the qualified custodian.

In addition, you will commonly incur certain charges imposed by third parties other than Financial Design
Group in connection with investments made through your account including, but not limited to IRA and
qualified retirement plan fees, miscellaneous expenses imposed by the qualified custodian(s) of your
account including but not limited to annual maintenance, clearance, custody and administrative fees.
Financial Design Group does not receive any portion of such third-party expenses or fees.

Financial Design Group and our supervised persons do not accept or receive compensation based on the
sale of securities or other investment products such as asset-based sales charges or service fees from
the sale of investment products.

Retirement Plan Services

For Retirement Plan Services, Financial Design Group charges an annual fee of between 0.20% to 0.80%
...

Item 7 – Types of Clients

Financial Design Group generally provides investment advice to the following types of clients:

        Individuals
        High net worth individuals
        Pension and profit-sharing plans

Minimum Investment Amounts Required

There are no minimum investment amounts or conditions required for establishing an account managed
by Financial Design Group. However, all clients are required to execute an agreement for services in
order to establish a client arrangement with Financial Design Group.